ICICI Bank to sell 6% stake in life insurance arm

ICICI Bank has approved a six per cent stake sale in its life insurance arm to Premji Invest and its affiliates, and to Singapore-based Temasek.

“The board of directors of ICICI Bank has at its meeting approved, subject to government and regulatory approval, the sale of six per cent out of ICICI Bank’s shareholding in ICICI Prudential Life Insurance Company, comprising the sale of four per cent to Premji Invest and its affiliates and two per cent to Compassvale Investments, an indirectly wholly-owned subsidiary of the Singapore-based investment company, Temasek,” the bank said.

The proposed transaction values the company at Rs 32,500 crore, ICICI Bank said, adding that ICICI Bank will hold approximately 68 per cent share of the company and its joint venture partner maintaining its current share of approximately 26 per cent.

ICICI Bank had, during the announcement of its second quarter results, announced the sale of nine per cent stake in its general insurance arm, ICICI Lombard General Insurance, to its joint venture partner Fairfax Financial Holdings for around Rs 1,550 crore.

The board of directors have also decided to appoint Vishakha Mulye as executive director on the board of directors of ICICI Bank, subject to necessary approvals. Vishakha Mulye is currently the managing director and chief executive officer of ICICI Venture Funds Management Company.